New Delhi:
Finance Minister Nirmala Sitharaman today presented the final government budget before the general elections. The 2024 Budget, an interim before a new government takes oath, focuses on infrastructure and long-term reforms to boost growth.
The budget has increased capital expenditure by 11.1 per cent to Rs 11.11 lakh crore. The government has resisted any major giveaways and said it would reduce its fiscal deficit to 5.1 percent of GDP in 2024-25 from 5.8 percent this year.
The government will borrow a gross amount of Rs 14.13 trillion in the fiscal year starting April 1, compared to Rs 15.43 trillion for the current fiscal, Nirmala Sitharaman said.
A breakdown of where the government gets its money from and what it spends it on:
Where does the rupee come from?
The Budget presented on Thursday stated that the loans and other liabilities constitute the Centre's highest income, 28 per cent of the total revenue. Next comes income tax (18 percent), followed by GST (18 percent) and corporate tax (17 percent). Non-tax receipts such as rent, fines and fines made up 7 percent of total income. Union excise duties (five percent), customs duties (four percent) and non-debt capital receipts (one percent).
Where does the rupee go?
When it comes to expenditure, the highest amount goes towards paying interest and the money given to the states in the form of taxes and levies, each of which constitutes 20 percent of the total expenditure. The allocation to central sector schemes is the next expenditure, which constitutes 16 percent of the total expenditure. It is followed by Other Expenditure (nine percent), Defence, Centrally Sponsored Programs and Finance Commission and other transfers (eight percent each) and grants of six percent.
Nirmala Sitharaman stated that the Indian economy has undergone a profound positive transformation over the past decade. “The Indian economy has witnessed a profound positive transformation over the past decade,” she said.
The Finance Minister concluded her budget presentation with a positive outlook, signaling the government's determination to continue promoting inclusive growth and development.
The 2024 Budget is expected to be thoroughly examined and debated in Parliament in the coming days as stakeholders assess its potential impact on the country's economic trajectory.